Plugging in a USB device freezes the computer

I have recently installed Windows XP home on a friend's Packard Bell machine which had 98 previously. He tells me that he is having problems with USB devices. At the moment he has a wireless logitech mouse, and also plugs and unplugs a digital camera and a flash memory stick thing. The problem arises when he plug in the camera or the flash memory stick, the computer freezes and he has no choice but to switch off using the power button (Ctrl Alt Del doesn't even work). I was thinking of updating the USB controller driver (possible?). Any ideas why this is happening and how to resolve it?Thanks, David.

USB is supposed to be 'hot pluggable', but as above, devices that draw power will sometimes affect the PC. I have XP, if I plug in my card reader it will freeze the PC. I leave it plugged in all the time now.

One thing to check, in Device Manager, USB root hub, Properties, Power. See if the power (current)available is being exceeded.

Unfortunately not. 500ma is usually the power available. For instance, if a ADSL modem is connected, that would use all the power. Anything plugged into the other port on the same hub will cause a problem.